Billable hours calculator

Turn logged hours into an invoice total, and see what your effective rate really is once non-billable time is counted.

Free, no signup, nothing to download. Results update as you type.

Invoice total$3,750.00
Utilization75.0%Billable hours as a share of hours worked
Effective rate$93.75/hrWhat you actually earned per hour worked, billable or not
Non-billable10 hrs
How this is calculated

Invoice total = billable hours x rate. Utilization = billable / worked. Effective rate = invoice total / total hours worked.

Frequently asked
What counts as a billable hour?

Time a client agreed to pay for. Admin, internal meetings, proposals and rework you absorbed are hours worked but not billable, which is exactly why the effective rate is usually well below the headline rate.

What utilization should I aim for?

Agencies commonly target 70 to 80 percent for delivery staff. Above 85 sustained usually means nobody has time for sales or improvement work; below 60 usually means the pipeline, not the people, is the problem.

Why is my effective rate so much lower than my rate?

Because it divides revenue by every hour worked. If you bill 26 of 40 hours at $150, you earned $3,900 across 40 hours, which is $97.50 an hour. That number, not the rate card, is what pays salaries.

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